S'pore residential rentals 5th highest in Asia: study

Published April 17, 2008

S'pore residential rentals 5th highest in Asia: study

But Republic still competitive for firms moving staff into region: ECA

By JOANNE CHIEW


SINGAPORE'S residential rental rates for a three-bedroom apartment have increased by 33 per cent over a year - from 2006 to 2007.

This makes Singapore the fifth most expensive location in terms of residential rentals in Asia and ninth globally, according to a recent survey by ECA International.

ECA International is a knowledge and solutions provider for international human resources professionals.

The annual Accommodation Survey compares rental prices in 92 locations worldwide.

A three-bedroom apartment in a popular expatriate area in Singapore costs about US$4,460 per month in 2007, up from US$3,364 the previous year.

The 33 per cent increase is also the largest in Asia.

Lee Quane, general manager of ECA International Hong Kong, attributes the steep rise to rising demand and limited supply.

'Companies (are) expanding their operations in Singapore together with government initiatives to attract skilled workers from overseas. But at the same time, the supply of property available has been limited by a number of factors such as en bloc purchases by developers, which have exacerbated the situation.'

In Hong Kong, the most expensive location in the world as ranked by the survey, rental is twice that of Singapore's for an equivalent property.

It costs 60 per cent more to rent in Tokyo, the second most expensive location in Asia, than in Singapore, which 'remains a competitive location for companies moving staff into the region', Mr Quane says.

In addition, Mr Quane explains that exchange-rate fluctuations also make a difference.

Rental prices have gone up where the local currency has strengthened against the US dollar, as in Singapore.

Six of the top 10 most expensive locations in the world are in Asia - Hong Kong (1st), Tokyo (4th), Mumbai (6th), Seoul (7th), Singapore (9th) and Ho Chi Minh City (10th). New York (3rd), Moscow (2nd), London (5th) and Caracas (8th) are the other four.

Average rental prices in Asia are around US$3,820, well above the global average of US$2,950.

Some of the survey's biggest rank movements have been experienced in the Middle East in Abu Dhabi, Sharjah and Doha, but Dubai remains the most expensive location there.

April 17, 2008

GLOBAL PROPERTY SURVEY

S'pore apartment rents are 9th highest


SINGAPORE is the ninth most expensive place to rent a three-bedroom apartment, according to a survey.

Rents surged by 33 per cent last year, boosted by companies expanding operations at a time of limited supply of property, said the survey report, which was released yesterday.

A three-bedroom unit in popular expatriate areas such as Orchard Road costs about US$4,460 (S$6,046) a month on average to rent, compared with about US$3,364 in 2006.

But Singapore's rents are far below those of Hong Kong, which is the world's most expensive place to rent a three-bedroom apartment.

The annual survey by human resources firm ECA International collected rental costs in 92 locations last September and converted them to US dollars.

A three-bedder in Hong Kong rents for about US$9,700 a month, compared with Asia's average of US$3,820 and a global average of US$2,950.

Moscow was second on the global list, followed by New York, Tokyo, London and Mumbai, with Seoul in seventh place. Caracas in Venezuela took eighth spot, with Singapore one notch ahead of Ho Chi Minh City.

ECA International Hong Kong general manager Lee Quane said demand for high-end apartments in the territory had driven up rents.

If it is a bargain you want, try Karachi in Pakistan, the world's cheapest place to rent an apartment.

JOYCE TEO